Used as an intermediate in organic synthesis, particularly in the preparation of phthalimide derivatives with biological activity. It serves as a building block in pharmaceuticals and agrochemicals due to its reactive aldehyde group and cyclic imide structure. The compound is also employed in the development of fluorescent probes and dyes, where its conjugated system enhances optical properties. Its bifunctional nature allows for use in cross-coupling reactions and the formation of heterocyclic compounds.